The North American Free Trade Agreement is a trilateral trading agreement between Canada, the United States of America and Mexico. It came into effect on January 1st, 1994, morphing from the Canada-United States Free Trade Agreement which existed between the US and Canada. The negotiations began in 1992 when George H.W. Bush, Brian Mulroney and Carlos Salinas, each responsible for spearheading and promoting the agreement, ceremonially signed it. Before the negotiations were finalized, Bill Clinton came into office in the U.S. and Kim Campbell in Canada, and before the agreement became law, Jean Chretien had become Prime Minister in Canada.
Effects
Trade/Industry
Growth of Trade became evident after N.A.F.T.A. Fair trade has become more possible and is expanding. The Maquiladoras, Mexican factories which take in imported raw materials and produce goods for export, has shown increase in the income of the factory workers by 15.5%.
Environment
It was originally feared that N.A.F.T.A would pose a systemic threat to the North American environment, but it has never been confirmed. N.A.F.T.A. imposes a threat to the North American Environment because if the three countries are forced to trade with each other, the transport of good will pollute the environment.
Agriculture
The concern with agriculture is that the countries would be finding it cheaper to import goods rather than using the agricultural resources from that country.
Chapter 11
Chapter 11 of N.A.F.T.A allows individuals or corporations to sue Mexico, Canada or the United States for compensation if actions taken by those governments have in some way taken away from their income. This issue has come up in cases when governments of one of three countries involved in N.A.F.T.A have passed laws or regulations that restrict the growth of businesses. This chapter has been criticized by all three countries involved in it, for many reasons. Some including not taking into account social or environmental considerations.
Manthanex, a Canadian company, filed a $970 million suit against the United States through N.A.F.T.A., claiming that the California ban on MTBE, a substance that may be dangerous, was hurting their income. The claim was rejected but other cases similar to this have passed.
Trade Between N.A.F.T.A Partners in Key Sectors, 1999
North American Free Trade Agreement, Chapter 11
Overview
The North American Free Trade Agreement is a trilateral trading agreement between Canada, the United States of America and Mexico. It came into effect on January 1st, 1994, morphing from the Canada-United States Free Trade Agreement which existed between the US and Canada. The negotiations began in 1992 when George H.W. Bush, Brian Mulroney and Carlos Salinas, each responsible for spearheading and promoting the agreement, ceremonially signed it. Before the negotiations were finalized, Bill Clinton came into office in the U.S. and Kim Campbell in Canada, and before the agreement became law, Jean Chretien had become Prime Minister in Canada.Effects
Trade/IndustryGrowth of Trade became evident after N.A.F.T.A. Fair trade has become more possible and is expanding. The Maquiladoras, Mexican factories which take in imported raw materials and produce goods for export, has shown increase in the income of the factory workers by 15.5%.
Environment
It was originally feared that N.A.F.T.A would pose a systemic threat to the North American environment, but it has never been confirmed. N.A.F.T.A. imposes a threat to the North American Environment because if the three countries are forced to trade with each other, the transport of good will pollute the environment.
Agriculture
The concern with agriculture is that the countries would be finding it cheaper to import goods rather than using the agricultural resources from that country.
Chapter 11
Chapter 11 of N.A.F.T.A allows individuals or corporations to sue Mexico, Canada or the United States for compensation if actions taken by those governments have in some way taken away from their income. This issue has come up in cases when governments of one of three countries involved in N.A.F.T.A have passed laws or regulations that restrict the growth of businesses. This chapter has been criticized by all three countries involved in it, for many reasons. Some including not taking into account social or environmental considerations.Manthanex, a Canadian company, filed a $970 million suit against the United States through N.A.F.T.A., claiming that the California ban on MTBE, a substance that may be dangerous, was hurting their income. The claim was rejected but other cases similar to this have passed.